Russia bans gasoline exports

Russia today ordered a ban on gasoline exports for six months, starting March 1, to stabilize prices and create conditions for the country's oil refineries to undergo maintenance.

Today, a spokesman for Russian Deputy Prime Minister Alexander Novak confirmed that the country will ban the sale of gasoline abroad.

Prime Minister Mikhail Mishustin approved the ban after Novak submitted it to him on February 21, RBC reported, citing a source close to the matter. "Given the sharp increase in demand for oil products, this measure is necessary to stabilize domestic prices," Novak said in the proposal. The ban will start on March 1 and last for six months.

Gasoline prices are crucial for drivers and farmers in Russia, the world’s largest wheat exporter, and some of its refineries have been hit by attacks from Ukraine in recent months.

Oil, gas and petroleum products are by far Russia's largest export, providing the country's main source of foreign currency. The country's GDP is currently around $1.9 trillion.

The Kremlin is also working with Saudi Arabia, the world’s largest oil exporter, to keep prices high, a common goal of the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Russia has voluntarily cut its exports by 500,000 barrels a day in the first quarter of 2024.

In September 2023, Russia also imposed a ban on foreign oil sales, due to tight domestic supplies and high fuel prices. In just three weeks, wholesale diesel prices in Russia fell 21%. Gasoline prices fell 10%. Their ban also pushed up global prices, forcing some buyers to seek alternative sources of gasoline and diesel.

They eased the diesel ban in October 2023 and lifted the gasoline ban in November, saying maintaining high refining output would ensure domestic supply and lower wholesale prices.

In 2023, the country will produce 43.9 million tons of gasoline and export 5.76 million tons, equivalent to 13% of output. The largest importers of this commodity are the UAE and African countries such as Nigeria, Libya, and Tunisia.

Ha Thu (according to Reuters)

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